MCCORMICK & CO /SH (MKC) Raised to Buy at Zacks Investment Research

MCCORMICK & CO /SH (NYSE:MKC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday, reports. The firm currently has a $169.00 price target on the stock. Zacks Investment Research‘s target price would indicate a potential upside of 12.81% from the company’s previous close.

According to Zacks, “McCormick’s shares have increased in the past three months. This is largely driven by the company’s robust-savings initiatives, which fueled its adjusted operating income during first-quarter fiscal 2019. Further, earnings during the quarter improved year on year and surpassed the Zacks Consensus Estimate. Also, the company’s top line continued to remain sturdy, gaining from a strong base business as well as new product developments. New launches under the Frank's and French's banners have been yielding results. Notably, the company is on track with new product developments across different categories for fiscal 2019.  Also, it is progressing well with augmenting digital marketing efforts. On the flip side, we note that adverse currency fluctuations were a drag on the top and the bottom line during the first quarter. Management expects such headwinds to persist in fiscal 2019. “

MKC has been the subject of a number of other research reports. Jefferies Financial Group reiterated a “buy” rating and set a $150.00 price target on shares of MCCORMICK & CO /SH in a research note on Tuesday, March 26th. Credit Suisse Group set a $108.00 price target on MCCORMICK & CO /SH and gave the company a “buy” rating in a research note on Thursday, December 20th. Deutsche Bank upgraded MCCORMICK & CO /SH from a “sell” rating to a “hold” rating in a research note on Friday, January 25th. Finally, Consumer Edge upgraded MCCORMICK & CO /SH from an “equal weight” rating to an “overweight” rating in a research note on Friday, January 25th. Six analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus price target of $132.57.

Shares of MKC traded down $0.54 during trading hours on Tuesday, hitting $149.81. The stock had a trading volume of 93,070 shares, compared to its average volume of 1,124,365. The company has a debt-to-equity ratio of 1.21, a current ratio of 0.78 and a quick ratio of 0.34. The company has a market cap of $19.87 billion, a PE ratio of 30.14, a P/E/G ratio of 3.17 and a beta of 0.25. MCCORMICK & CO /SH has a 1-year low of $99.53 and a 1-year high of $156.00.

MCCORMICK & CO /SH (NYSE:MKC) last issued its earnings results on Tuesday, March 26th. The company reported $1.12 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.06 by $0.06. The company had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.24 billion. MCCORMICK & CO /SH had a return on equity of 21.41% and a net margin of 12.19%. The firm’s revenue for the quarter was up 1.3% compared to the same quarter last year. During the same period last year, the business posted $1.00 EPS. Analysts expect that MCCORMICK & CO /SH will post 5.27 EPS for the current fiscal year.

In related news, major shareholder Alan D. Wilson sold 90,000 shares of MCCORMICK & CO /SH stock in a transaction that occurred on Monday, March 18th. The shares were sold at an average price of $140.00, for a total value of $12,600,000.00. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 11.00% of the stock is owned by company insiders.

Large investors have recently bought and sold shares of the stock. Private Trust Co. NA raised its holdings in shares of MCCORMICK & CO /SH by 34.3% in the 4th quarter. Private Trust Co. NA now owns 5,662 shares of the company’s stock worth $788,000 after purchasing an additional 1,446 shares during the period. YHB Investment Advisors Inc. raised its holdings in MCCORMICK & CO /SH by 15.8% during the 4th quarter. YHB Investment Advisors Inc. now owns 54,465 shares of the company’s stock valued at $7,584,000 after acquiring an additional 7,432 shares during the period. Korea Investment CORP raised its holdings in MCCORMICK & CO /SH by 74.7% during the 3rd quarter. Korea Investment CORP now owns 1,859 shares of the company’s stock valued at $245,000 after acquiring an additional 795 shares during the period. Vanguard Group Inc. raised its holdings in MCCORMICK & CO /SH by 0.6% during the 3rd quarter. Vanguard Group Inc. now owns 13,463,310 shares of the company’s stock valued at $1,773,790,000 after acquiring an additional 79,040 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. bought a new stake in MCCORMICK & CO /SH during the 3rd quarter valued at $263,000. 80.26% of the stock is currently owned by institutional investors.


McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. The company operates in two segments, Consumer and Flavor Solutions. The Consumer segment offers spices, herbs, and seasonings, as well as desserts.

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